Millennials won’t rely on Social Security. That’s probably a good thing. - CNBC & AMAC
Megan Leonhardt of CNBC reports the findings of recent studies showing that Millennials (born between 1981 and 1997) are not planning to rely on Social Security to fund their retirements. If only all generations thought that way. Social Security is an important program for all. But it replaces just 40 percent of pre-retirement income, and as Leonhardt notes here, that figure could go down as the program faces real financial troubles. Experts had predicted and the Social Security’s own Board of Trustees has been stating the insolvency would hit in 2034. At that time, past reserves would be exhausted and across the board cuts would occur for all around 23% unless Congress acted to shore up the program with benefit cuts, tax increases, or increasing the retirement age. Those are the usual fixes noted. But the pandemic has hastened the reserve depletion date to as early as 2029 now. Leonhardt advises ramping up savings in employer sponsored programs like 401k plans or saving money in IRAs. Full article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new, voluntary plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.